EUR/USD hits two months lows under 1.1850, remains under pressure
- US dollar rises further during the American session, not affected by lower yields.
- EUR/USD testing support area of 1.1845/50.
The EUR/USD dropped further and reached at 1.1844, the lowest intraday level since early April. The pair quickly rose back above 1.1850; however, the euro remains under pressure, fighting to hold above the 1.1845/50 support. The US dollar strengthened across the board during the American session amid end-of-month flows.
The US dollar gained momentum even amid lower US yields and a rebound in Wall Street stock indices. The 10-year yield fell to the lowest since June 21 under 1.45%, while the Dow Jones is up by 0.45% and the Nasdaq is still in negative (-0.08%), but off lows.
The key economic report on Wednesday came in above expectations: the ADP employment report showed an increase in private payrolls of 692.000 (vs. 600K). On Thursday, jobless claims data is due, and on Friday, the NFP.
Comments from Fed’s Kaplan also helped the greenback during the US session. He said he is ready to taper sooner “because of questions about efficacy, side effects."
EUR/USD outlook
The pair is pushing to the 1.1845/50 support, and a consolidation below should leave the euro vulnerable to more losses. The next support stands at 1.1830/35 followed by 1.1795. If the euro manages to hold above 1.1845 it should keep losses limited. A recovery above 1.1900/1.1910 would alleviate the bearish pressure.
Technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
